Investor perception towards small medium enterprises investment in Africa

J. Aboah, B. White, M.P.M. Meuwissen

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This study seeks to examine investor perceptions towards investing in SMEs in Africa. Data was collected via an online survey sent to investors on the Venture Capital for Africa (VC4Africa) platform. The Kendall’s coefficient of concordance was used to determine the degree of agreement among investor perception towards the importance of venture and country characteristics in their investment decisions. A logistic regression model was used to determine the factors that influence investor decisions to invest in African SMEs. The results reveal that investors’ working experience in Africa and their perceived importance of the financial performance of a venture and availability of exit strategies are the factors which influence investment decision in African SMEs. Results stimulate further discussion in the services provided by venture capital and angel investor networks, which is beneficial to key stakeholders in the venture capital and private equity ecosystem.
Original languageEnglish
Number of pages18
JournalInternational Journal of Economics, Commerce and Management
VolumeIII
Issue number1
Publication statusPublished - 2015

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